Bahrain's IIFM plans to issue global guidelines for sukuk

'We are working on a sukuk master agreement based on asset-backed structures', agency says
SUKUK GUIDELINES: \nShariah-compliant bonds are typically backed by assets and pay a share of profit instead of interest (Getty Images)
By Bloomberg
Mon 22 Nov 2010 02:56 PM

The International Islamic Financial Market, a Bahrain-based agency seeking
to set standards for Islamic securities, may issue global guidelines in the
next 12 to 18 months to facilitate the sale of sukuk, an official said.

“We are working on a sukuk
master agreement based on asset-backed structures,” IIFM’s chairman Khalid
Hamad said in an interview in Manama on Monday.

The guidelines will “help boost confidence in the sukuk
industry, leading to more sukuk sales and attracting more investors.”

Shariah-compliant bonds
are typically backed by assets and pay a share of profit instead of interest.

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